Credit Suisse had been sued by an investor for misrepresenting & manipulating the financial product that had plunged 90% in a market sell-off. The note, VelocityShares Daily Inverse VIX Short-Term Exchange-Traded Note (ETN) was worth around $1.6 billion before the crash. The swiss bank is alleged to liquidate its holdings to avoid losses.

” Credit Suisse sued for Misrepresenting & Manipulating Products “

The note tracks the CBOE Volatility Index, VIX, which is also known as the fear index. In a statement to Reuters, the product is only intended for sophisticated institutional clients and the bank had publicly available prospectus which had accurately and fully disclosed the risks of the investment in XIV (stock ticker). XIV had booked more than 500% gain for the 2 years ending 1st February 2018. The lawsuit, which seeks class-action status as well as unspecified damages is filed in U.S. District Court in Manhattan.

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